X理論和Y理論在餐廳領導的應用

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(1)36. The Implementation of Theory X and Theory Y Managements in Restaurant Leadership By Fung, Kin-Kei Dissertation advisors: Dr. Wang, Kuo-Ching and Dr. Chan, Hsi-Chen. National Taiwan Normal University Graduate Institute of Sports, Leisure and Hospitality.

(2) 國立臺灣師範大學運動與休閒學院運動休閒與餐旅管理研究所碩士學位論文. X 理論和 Y 理論在餐廳領導的應用. 研究生：馮建基指導教授：王國欽共同指導：詹悉珍中華民國 104 年 6 月中華民國臺北市.

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(5) X 理論與 Y 理論在餐廳領導的應用 2015 年 6 月研究生: 馮建基指導教授: 王國欽共同指導：詹悉珍. 摘要海峽兩岸和北美的餐飲業正蓬勃發展，而在不久的將來也會持續興榮。外食已成為現代社會不可或缺的一部份，因其便利、經濟、實惠等特質，不僅是台灣和內地的民眾是外食族，就連北美的學生和上班族也奉外食為圭臬。外食已經不只是每天的例行公事，更是文化潮流的一環。本研究運用 X 理論和 Y 理論分析「鼎泰豐」、「王品」、和「海底撈」三家等級相近且經營成功的中式餐飲連鎖店，以及「星期五餐廳」、「澳美客牛排館」、和「麥當勞」等三家西式餐廳連鎖店。研究目的為辨識上述幾間企業的領導特質，並探討 X 理論與 Y 理論實際應用在管理上的成效。最後依照理論將各餐廳分類，讓餐廳持有人能夠將本研究之結果套用在經營管理上。本研究方法採用大量的文獻分析與線上問卷調查是由九位學者與就業者填寫。最後，本研究的主要發現是大部分的餐飲連鎖店是導向於 Y 理論。因為它對企業者和學者都有正面的發展空間。因此從這項研究結果有助於從業者和學者在他們的領域範圍之應用。. 關鍵字: X 理論和 Y 理論、標準作業程序、員工授權、獎勵. iii.

(6) The Implementation of Theory X and Theory Y Managements in Restaurant Leadership June, 2015 Graduate: Fung, Kin-Kei Advisor: Wang, Kuo-Ching Co-Advisor: Chan, Tsi-Chen. Abstract Both Cross-strait and North America have a flourishing economic growth in the restaurant industry, and would be likely to expand their operations in the foreseeable future. Restaurant dining nowadays has become a common routine in the world of food and beverage industry. It is convenient, practical and inexpensive to dine out in Cross-strait, and as for living in North America, that has become part of a social norm in working and schooling lives. Thus, the purpose of this research focuses on analyzing and implementing Theory X and Theory Y from the three successful Eastern franchises: Din Tai Fung, Wowprime, and Haidilao, and three successful Western franchises: T.G.I. Fridays, Outback Steakhouse, and McDonald’s into any restaurant or catering business. By distinguishing each of its own characteristic approach on leadership when applying both theories to lead the employees in the organization will realize how effective their approaches can be when adapting them into practice. Methodology relies on literary analysis and online questionnaire survey filled out by nine scholars and practitioners. The results were most of these restaurant chains are Theory Y oriented due to its greatly appraised instrumental effects that could offer to the catering businesses. In conclusion, laying out each managerial practice to the corresponding category of Theory X and Theory Y will exhibit a much clearer perspective, enabling both practitioners and scholars to apply further knowledge in their fields of interests.. Keywords: Theory X, Theory Y, SOP, Employee Empowerment, and Performance Appraisals. iv.

(7) Acknowledgements The sheer complexity, depths and magnitude of Theory X and Theory Y dissertation could not be written possible without Dr. Wang’s signature guidance on it, and so to extend my sincere gratitude, I want to thank my dearest and humblest advisor Dr. Gordon Wang who was willing to accept me into his advisory group 王家團隊 at the very last minute in 2014. His method of coaching his advisory students is beyond extraordinary! I was able to absorb his instruction fast and it helped me complete my thesis in just 10 months. It was indeed a miracle that I was able to catch up everything under one year before graduation. I can honestly say, without his balanced sets of Theory X and Theory Y method of supervision, I probably would not graduate in time! Thank you Dr. Wang, thank you for giving me a chance to shine! Finally, I would also like to say thanks to my co- advisor, Dr. Rebecca Chan, she was a tremendous help to me during the 3rd semester by providing various feedbacks. She was also great as one of the committees during the first and final thesis proposal. My parents are such wonderful people who have given me the opportunity to study in Taiwan for the very first time in my life. Therefore, I am extremely grateful for their love and support. These three years in Taiwan were the most memorable time in my life; I have met many great people during my study who were willing to help me, and for that reason I will cherish their friendships for always… To end my acknowledgements, I would like to share a heartfelt quotation in my own words:. Nothing in life is impossible to achieve if one could cast aside doubts, fear and skepticism by willing to aspire; but also to have faith in one’s ability and potential. When the dream has finally come to fruition with a given path. Follow that path instinctively to where it will lead eventually. In the end, life is full of wonderful surprises!. THANK YOU NATIONAL TAIWAN NORMAL UNIVERSITY! v.

(8) Table of Contents 口試委員與所長簽字論文通過簽名表…………………………………………………..............i 論文授權書......................................................................................................................................ii 摘要……………………………………………………………………………………………….iii Abstract…………………………………………………………………………………………....iv Acknowledgements……………………………………………………………………...………...v Table of Contents………………………………………………………………………………....vi Tables……………………………………………………………………………………………..x Figures…………………………………………………………………………………………....xi. Chapter One (Introduction)……………………………………………………... 1 Section I. Research Background…………………………………………………………1. Section II Research Purpose…………………………………………………………..8 Section III Research Propositions………………………………………………………...9 Section IV Research Process………………………………………………………...…..10 Section V The Importance of Research……………………………………………….12 Section VI Operational Definition of Theory X, Theory Y, and Theory XY………....12. vi.

(9) Chapter Two (Literature Review)…………………………………………........15 Section I Types of Restaurant and its Characteristics……………………………….15 Part I Current Restaurant Industry of Cross-strait………………………………………………15 I). 王品集團 (Wowprime)………………………………………………………………..19. II). 鼎泰豐(Din Tai Fung)………………………………………………………………...20. III). 瓦城泰統 (Thai Town Cuisine)……………………………………………………….21. IV). 乾杯食集團 (Kanpai Group)………………………………………………………….22. V). 爭鮮 (Zensen Sushi Express)………………………………………………………….23. VI). 三井(Mitsui)...................................................................................................................24. VII). 海底撈 (Haidilao)……………………………………………………………………..25. Part II Current Restaurant Industry of North America………………………………………….26 I). Red Lobster…………………………………………...................................................30. II). Tim Hortons…………………………………………………………………………..31. III). Sushi Shop……………………………………………………………........................32. IV). T.G.I. Fridays…………………………………………………………………............33. V). Outback Steakhouse…………………………………………………….....................33. VI). McDonald’s…………………………………………………………………………..34. VII). Schwartz’s……………………………………………………………………………35. Section II Introduction to Theory X and Theory Y by Douglas McGregor……………………...37 Section III Appling Theory X, Theory Y, and Theory XY with Restaurants in Cross strait…….42 I). Din Tai Fung (鼎泰豐)…………………………………………….............................43. II). Wowprime (王品)………………………………………………………………….....53 vii.

(10) III). Haidilao (海底撈)…………………………………………………………………….68. Section IV Appling Theory X, Theory Y, and Theory XY with Restaurants in North America……………………………………………………………………………………....82 I). T.G.I. Fridays………………………………………………………………………....83. II). Outback Steakhouse……………………………………………………………….....91. III). McDonald’s…………………………………………………………………………100. Chapter Three (Methodology)………………………………………………....117 Section I Sample Collection and Data Analysis………………………………………..117 Section II Content Analysis…….....................................................................................118 Section III Theory X and Theory Y Categorization……………………………………118 Section IV Research Analytical Process………………………………………………..120. Chapter Four (Research Results)……………………………………………...121 Section I Inference Behind the Analytical Explanations for Obtaining the Results…...121 Section II Process of Obtaining the Results from Returned Questionnaire Survey…..132 Section III Terminology and Original Sources Stated ………………………………...134 Section IV Final Results from the Returned Questionnaire Survey ……………………139 Section V Content Analytical Results …………………………………………………142. viii.

(11) Chapter Five (Conclusion & Suggestions)……………………………………147 Section I Primary Findings in Theory X, Theory Y & Theory XY……………….147 Section II The Implementation of Ten Chosen Theory X, Theory Y, and Theory XY in Takara Japanese Cuisine Restaurant…………………………………………………….153 Section III Conclusion on Takara Japanese Cuisine Restaurant’s Theoretical Management Orientation…………………………………………………………................................161. References (引用文獻)……………………………………………………162. Appendix………………………………………………………………………...168 Online Questionnaire Survey Sample…………………………………………………..168. ix.

(12) Tables Table 2-1 Restaurant Chains and Franchises in Cross strait…………………………………….16 Table 2-2 Restaurant Chains and Franchises in North America………………………………....27 Table 2-3 Theory X and Theory Y Approaches……………………………………………….....41 Table 2-4 Characteristics of Theory X, Y, and XY with Restaurants from C.S…………………42 Table 2-5 Characteristics of Theory X, Y, and XY with Restaurants from N.A………………...82 Table 3-1 Participants’ Background Information……………………………………………….119 Table 4-1 Results based on Returned Survey…………………………………………………...133 Table 4-2 Terminology and Original Sources Stated…………………………………………...135 Table 4-3 Final Results from Theory X and Y Restaurant Categorization……………………..139 Table 5-1 Ten Chosen Theoretical Managements for Restaurant Implementation…………….148. x.

(13) Figures Figure 1-1. Research Process Flow Chart………………………………………………………..11 Figure 3-1. Research Analytical Flow Chart……………………………………………………120 Figure 5-1. Logo and Sign………………………………………………………………………149 Figure 5-2. Sushi bar (front) and (side)………………………………………………………....150 Figure 5-3. Dining area (front) and (side)………………………………………………………150 Figure 5-4. Tatami room………………………………………………………………………...150 Figure 5-5. Traditional Takara Sushi Platters…………………………………………………...151 Figure 5-6. Rainbow and Caterpillar Maki……………………………………………………...151 Figure 5-7. Sushi Champaign and Eurasian Fusion…………………………………………….151 Figure 5-8. Interior shot of Le Cours Mont-Royal…………………………………………….152 Figure 5-9. Exterior & Interior shot of Le Cours Mont-Royal………………………………...152. xi.

(14) Chapter One Introduction The first chapter is divided into six sections: research background, research purpose, research propositions, research procedure, importance of research, operational definitions of Theory X, Theory Y, and Theory XY.. Section I Research Background Chapter one will begin by introducing the current restaurant industry in Cross-strait and North America. Cross-strait has a reputable name for ‘dining paradise’ where patrons are given a large array of dining selections from casual to fine dining. For instance, the food and beverage industry in Taiwan plays a very important role because of their hospitality services were well received by locals and tourists alike, and so the government could see that the hospitality and tourism industry has unlimited potentials for further development. According to the food and beverage revenue of Taiwan from 2003 to 2013 was $391.5 billion. The statement was released by the Ministry of Economic Affairs Bureau as it mentioned the rapid growth of the wholesale, retail, and catering service industry is looking very optimistic. In 2013, the annual income had reached $391.5 billion mainly from the growth of restaurant industry. The stunning rapid growth of the market is due to two reasons, the growth of domestic market as locals are dining out more frequently, and secondly, the increase of foreign travelers. This benefits both ways for tourism industry and catering service industry in Taiwan (餐飲服務產業，2014). The current popular restaurant types are hot pots, fast-food, xiao-chi (snacks), teppanyaki and set meals. Evidently, the figure had rose steadily in the past and will continue to do so in the present. According to the food and beverage analysis in China from 中國網, the Chinese foodservice 1.

(15) industry in 2014 has generated RMB $2.786 trillion with a revenue of 9.7%, which is on par (陳曦霞，2015). The current market looked optimistic as the catering revenue growth increased in total retail sales of 12% in the past three years when it continues to expand financially and commercially. In 2013, the food and beverage industry had boost a retail sales of 1.12% which gives a total increase in annual income of $820.8 billion yuan. The growth of 2.2% showed positively as it significantly improved 4% higher than in 2012. In sum, throughout the financial year of 2014, the growing market of restaurant industry in China had achieved a steady rise to create a positive energy in all of its restaurant businesses. The current restaurant trend in China features a variety of Western brands like McDonald’s, Starbucks, KFC, Pizza Hut, and etc.. They also have other brands from Asia such as Wowprime Steak (王品牛排) from Taiwan, and Yoshinoya (吉野家) from Japan to compete with their own brands like Haidilao (海底撈), and Waipaojia (外婆家)(陳曦霞，2015). In Canada, the food and beverage restaurant industry also plays a critical role as it soars high in the foodservice industry sales, which are expected to increase by 4.4%, or almost CDN$3.2 billion, rising to CDN$71.1 billion in 2014 as more Canadians are showing their interests in dining out at commercial restaurants with a 2014 over-year increase of +2% (GE Capital Franchise Finance, 2014). This is great news for the employment sectors as restaurants. are the number one place where Canadians get their first job says Restaurants Canada president and CEO Garth Whyte. “We’re a training ground for thousands of young people every year, and in our industry they learn skills that will help them in any career”. The hospitality industry in Canada is in fact stabilized and healthy as it creates more job opportunities for every Canadian citizen (CNW A PR Newswire Company, 2014). In 2014, the restaurant industry of Canada generates 23 billion dollar with the help of social network such as Facebook or Tweeter for job searching that is used on their online platforms (Huffington Post Canada, 2014). 2.

(16) In the U.S, the food and beverage industry showed remarkable achievements in the total sales of food and drinks of U.S social caters from 2009 to 2014, generated a whopping sale of US$8.67 billion (Statista.com, 2014). The current restaurants in North America are a mixed of ethnicities that offer a wide range of cuisines from Asian to Western. However most of these Eastern foods have been somewhat Westernized to adapt to their local taste preference. As more and more locals from Cross-strait and North America are willing to dine out to restaurants in their country. This proves the food and beverage industry is indeed an important market segment for the economy. Hence, the motive of this research will explain the significance of incorporating Theory X and Theory Y into the restaurant business in leadership and managerial setting. It is suffice to say that all major restaurant chains or other types of business industry have been somewhat influenced or inspired by Douglas McGregor (1960)’s managements of Theory X and Theory Y. Referencing both theories allow restaurant owners to develop their own business managements. The reasons and purpose for analyzing these particular three restaurants is due to both Din Tai Fung and Wowprime restaurant chains are the largest and most successful franchises in Taiwan that are able to expand its business operation overseas. Haidilao on the other hand, it is famous for its impeccable services that many restaurant giants such as KFC, and Pizza Hut wanted to know its secret for success. They even invited Zhang Yong, the owner of Haidilao to the U.S to give a speech about his success in running and managing Haidilao (Zhao, 2011). As for both Outback Steakhouse, and T.G.I. Fridays, they are doing extremely well due to their business management in employee empowerment. Outback Steakhouse was extremely well received in South Korea due to the introduction of American business culture to the country that there are no strong emphasises on hierarchy, everyone is treated the same and has equal. 3.

(17) rights to address their opinions, or share their thoughts. This intrigued the South Koreans, as they are brought up in a strong hierarchical society where they are told to listen and to obey their superiors regardless (Lee, Khan, & Ko, 2008). Fortunately, the American business culture works in Korea, and this explains the success of introducing an international brand like Outback Steakhouse in foreign soil. In T.G.I. Fridays’ case, their success may have to contribute to the so-called “mass customization”, where employees create a sense of belonging to which customers can feel intimated by the genuine care they receive. This includes giving out advices and counselling to customers in a way they can make the orders they want. Thus, it proudly enhances the personalized meal ordering experience customers can get when they do not know what they should order on the menu (Lashley, 2000). This is what T.G.I. Fridays meant for providing a service which “creates a sense of social connection to others” (Adelman, Ahavia, & Goodwin, 1994, p.14). Finally, McDonald’s is the world’s famous and successful mega restaurant franchise that many restaurant chains like Din Tai Fung, Wowprime, and Haidilao have drew their inspirations when establishing their own business management. McDonald’s is a type of franchise that many business corporations wanted to emulate. The benchmark for choosing these restaurant chains would have to be successful, iconic, and influential that can represent the origin of their country. For instance, McDonald’s, the monumental giant is originated from the U.S, so it is an iconic symbol of America’s success in restaurant industry. The importance of incorporating Theory X and Theory Y by theorist Douglas McGregor (1960) into today’s competitive world of business industry showed great advantages in management, according to Dr. Aydin (2012) of Okan University, Institute of Social Sciences. He argued that Theory X management is less effective than Theory Y management, because Theory X managers emphasize the chain of command, reward or punishment motivational techniques, 4.

(18) and close supervision of subordinate behaviours along rigidly behavioral parameters. Based on McGregor’s argument of Theory X, it is a hindrance of helping organization to meet goals, solving problems, and delivering product in a reliable manner (Aydin, 2012). He even further stated that Theory X is less effective due to its individual-oriented working nature rather than group-oriented working nature in Theory Y. In other words, people working under Theory X environment are prone to work alone in tasks under heavy supervision by Theory X managers. Hence, the outcome would be less productive than group-oriented projects. The only motivator is monetary reward that can make Theory X workers to produce more. In Theory X, managers from an authoritative perspective assume workers are inherently lazy and will avoid working if possible. If the workers at one’s company exhibit such behaviors, then one can look at Theory X to develop the type of management tactics that is suitable in managing those type of employees. In a brief definition of Theory X, it is a hard approach that is designed to monitor employees’ daily working routine. Because there is not enough trust established among both parties, so employers are constantly monitoring whether employees would sneak out of the company for not working, or stealing company’s properties. Noticeable characteristics found in Theory X developed by most restaurant chains are physical and mental training, stipulations, regulations, standard operating procedure (quality service control), coercion, accountability, punishment with threats, bonuses, rewards, work appraisals, and benefits as a complete set of disciplinary system with incentives designed to persuade and to motivate workers from working hard for the company. However, relying on just one theory is not enough to manage and lead the company of employees, and so McGregor (1960) developed another type of theory which is the opposite of Theory X. He called it Theory Y, which is the Yang to the Ying of Theory X. It is universally believed that everything must need an opposite force to restore balance. Hence, Theory X and Theory Y restore the balancing scale of management. Dr. Aydin (2012) even praised Theory Y 5.

(19) for its effective management, because Theory Y workers will exercise self-direction and selfcontrol in the service of objectives to which he is committed. That being say, Theory Y workers will produce more creative and innovative products and services because they are granted with autonomy within their areas of accountability, and they structure work so that workers have ample opportunity to identify problems and creative solutions to them (Aydin, 2012). In other words, people working under Theory Y environment are expressive, creative, and innovative in delivering favourable tasks to meet organizational goals. Hence, Theory Y management is more productive and effective than Theory X management because they are given the ability to elicit their true potentials In Theory Y, the liberal perspective that managers view in their workers to be as productive, participative, and innovative. Each individual employee is considered as the most valuable asset, and so the company will treat them with respect by providing them the best working and living environment. They are the brains of the organization that will invent and create products and services for the public. In other words, Theory Y is a soft approach that is greatly appreciated by managers from their workers. Theory Y workers are not inherently lazy, they enjoyed working and always will think from the company’s perspective when making decisions such as waiving off cheques or giving away freebies to customers. Many companies are developing strategies that can influence their employees’ behaviours to be more Theory Y oriented. Hence, many companies begin developing incentive plans like rewards, bonuses and appraisals that not only can it help retain their employees from quitting, but it also can help motivate them to work as hard and to be as creative as possible. Therefore, Theory Y workers are being rewarded for their excellence in job performance and also for their creativities that has developed many brands, dishes and services in the company. Noticeable characteristics found in Theory Y developed by most restaurant chains are academic learning, creativity, abdication,. 6.

(20) delegation, empowerment and decentralization which are all permeated throughout the organizational culture that is heavily influenced by trust and honesty. Finally, Theory XY is the third theoretical management that was not developed by McGregor, but rather it is a diversified managerial practice that combines both Theory X and Theory Y together as an unified management applicable for either orientation. Thus, the practice is inclining towards a favourable democracy where managers view their workers to be either Theory X or Theory Y depending on the situation. For example, rewards and appraisals can be applicable to both Theory X and Theory Y workers, but the intention behind the practice could be motivational for Theory X workers or to show appreciations for Theory Y workers. Another example is when both Theory X and Y employees are given an equal opportunity in employment and management training. To sum up Theory Y in just a few words is trust and integrity, it is essential for any business relationship with employees, partners and shareholders to have trust among themselves. Because trust is the force that can build up business and to improve the labor condition. If managers solely rely on using Theory X, employees will then leave the company, because there is no trust, benevolence, and compassion. However, if managers only adopt Theory Y, then employees may find loopholes to take advantage of. Therefore it is important for managers and leaders to find ways to balance their business managements when using Theory X and Theory Y. Thus, unifying both managements as a whole can enhance the overall execution where Theory XY accentuates for showing a democratic view on management. Therefore it is important to integrate Theory X and Theory Y managements into the restaurant business environment as it can help managers to lead employees effectively in accordance to either or both managements he or she should use.. 7.

(21) On chapter two, Applying Theory X and Theory Y with Restaurants in Cross-strait and North America. The purpose is to lay out each famous restaurant chain’s business managerial plan when they developed their ideas from adopting Theory X and Theory Y. There are 14 restaurant case studies in total: seven Asian restaurants from Cross-strait: Din Tai Fung (Taiwan), Wowprime (Taiwan), Haidilao (China), Thai Town Cuisine (Taiwan), Kanpai Group (Taiwan), Zensen Sushi Express (Taiwan), and Mitsui (Taiwan). Seven Western restaurants from North America: T.G.I. Fridays (USA), Outback Steakhouse (USA), and McDonald’s (USA), Red Lobster (USA), Tim Hortons (Canada), Sushi Shop (Canada), and Schwartz’s (Canada). The benchmark requirement in chapter two also serves a similar purpose mentioned earlier in chapter one that they must either be iconic, influential, or successful. A few of these restaurant chains such as McDonald’s (USA), Din Tai Fung (Taiwan), Haidilao (China) and Tim Hortons (Canada)’s later became as influential in their country as their names grew into an iconic symbol of economic success. The reason behind analyzing two different continents of restaurants. Such motive allows one to make a conclusion for each managerial approach. What is the difference between Asian restaurant managerial approach and Western restaurant managerial approach? What are the benefits found from each approach? Once all the differences in benefits are lay out in the conclusion; new managers and operators to opening their new restaurants can see clearly which strategy or plan is suitable and adoptable for their companies from analyzing these fourteen major restaurant chains.. Section II Research Purpose The research purpose was to find out the final result for each of the restaurant franchise’s true orientation. Whether they are inclining towards either Theory X, Theory Y or Theory XY managerial spectrum. The most letters of either Theory X, Theory Y or Theory XY has been 8.

(22) found in each of the restaurant and has determined its true orientation. In other words, the final result from each corporate managerial theory has been decided by the overall majority of the nine respondents.. Section III Research Propositions The first proposition is that SOP or known as Standard Operating Procedure, employment training, bonuses, rewards, and performance appraisals, and rules and constitutions are the common managerial practices found in these six restaurants belong to Theory X management. The logics and explanations behind the propositions were that each managerial practice described how the rules set by the restaurant are strict and in order to make workers comply to such demands, they must go through rigorous training and pass each phases before getting the employment. Those that satisfy the job requirement will get monetary rewards as an incentive to motive Theory X workers whose behaviour is lazy and passive which Douglas McGregor (1960) described his notion of Theory X workers from Theory X management. The second proposition is that management training, recognition, learning motivation, EAP or known as Employee Assistant Program, learning through visitations, creativity, ingenuity, and innovation, self-direction and self-control, communication and decentralization, and trust and relationships are the common practices which belong to Theory Y management. The reason is that only Theory Y workers have the persistence and patient to pursue for greater perfection and they will not hesitate to find out if there is any possible opportunity for selflearning and self-upgrade in order to get promotion from the company. They have great potentials that have not yet fully realized by managers in the company. Their contributions in creativity will bring new innovating products or services to the company. Lastly, decentralization requires huge amount of trust between both employer and employee. In order to establish a long lasting partnership, trust is very important in decentralization. Without trust and relationship in the 9.

(23) picture, decentralization will not be able to initiate. Decentralization is when superiors from the higher management give regional managers access to certain authorities. They will then have the power and responsibility to make important decisions. Finally, the third proposition is that employee empowerment with restrictions or limitations belong to Theory XY management. The reason was that such managerial practice is inclining towards both Theory X and Theory Y spectrum which created a contradiction in the workplace. Since empowerment is inclining towards the Theory Y spectrum due to trust and honesty found in Theory Y workers, but limitations or restrictions included in empowerment is inclining towards the Theory X spectrum, simply because Theory X workers have the lowest level of trust in the minds of managers, so they will not transfer the empowerment to Theory X workers, but rather they feel safe handing it to Theory Y workers. However if managers cannot fully trust Theory Y workers, then they must think Theory Y workers have a slight possibility of being dishonest, hence Theory XY was developed in one’s third proposition.. Section IV Research Process The scope of study is largely derived from secondary sources such as books, literature reviews, corporate financial annual reports, and other validated websites. All fourteen of the restaurant case studies are divided into two segments: current restaurant industry in cross- strait and current restaurant industry in North America. The content analysis of these restaurants are based on the most current secondary sources dating from 2010 to 2014. Some of the restaurants such as Wowprime and Tim Hortons have the most current events occurred from their business timeline. For instance, Wowprime will be launching its 15th brand restaurant sometime in 2014, called ITA, which is an Italian cuisine restaurant, and Tim Hortons recently announced to have. 10.

(24) sold to Burger King for $11.4 billion for becoming a franchise merger. Those were the types of recent events that the restaurant chains took place in their corporate timeline. From the fourteen restaurant case studies, only six of them including Din Tai Fung, Wowprime,, and Haidilao from Cross-strait; and T.G.I. Fridays, Outback Steakhouse, and McDonald’s from North America will be further analyzed for their business management from using Theory X and Theory Y by McGregor (1960). Finally, the only limitation is acquiring full access to interviews with the six current CEOs in Cross-strait and North America can be extremely difficult due to corporate permission and time constraint are the two biggest obstacles. The following flow chart exemplifies the research process in the finest detail from initial concept to the finished thesis dissertation.. Exploring research themes on restaurant management from the East and the West. Finding books and scholarly journals on restaurant chains managements. Analyzing each restaurant chain’s management and leadership role. Receiving feedbacks and suggestions from panel judges to correct errors. Implementing Theory X and Theory Y managerial concepts into restaurant chains. Placing managements in the right category of Theory X or Y after receiving all returned surveys. Designing and submitting questionnaire survey to 9 participants. Conclusion on restaurant managerial orientation and implementation in Takara Japanese Cuisine Restaurant. Classify each restaurant’s signature management and to describe their orientation Figure 1-1. Research Process Flow Chart Source: Figure of this research was designed by oneself 11.

(25) Section V The Importance of Research The importance of research in classifying and analyzing Theory X and Theory Y management from these 6 restaurants are beneficial in many ways. For instance, the results can give future managers some important insights or ideas when establishing a restaurant business. What type of practices from Theory X or Theory Y management should they implement into their business models. Hence, these future managers can take references from restaurants of the East and the West by making comparisons with each other whether such practices from Eastern restaurant management or from Western restaurant management are appropriate for their restaurant business setting. Finally, it can be served as academic purposes in all learning environments.. Section VI Operational Definition of Theory X, Theory Y, and Theory XY According to Douglas McGregor (1960), his interpretation of Theory X management is that people are generally lazy, unintelligent, irresponsible and lack little ambition to climb the corporate ladder. So they must be coerced, persuaded, rewarded, threatened or punished to do the work. In other words, these are the type of people preferred to be directed or told how to do their job (McGregor, 1960). This explanation is a great example of a carrot and a stick approach to entice the unambitious employees to reach goals, only in their minds they just wanted to bite the carrot, which is the symbolism of rewards. So in order to induce them from moving forward, carrot and a stick approach or rewards can do the trick, but only temporary. On the other hand, Theory Y, which McGregor (1960) explained is that people are not born lazy, and in fact they are willing to accept responsibility and to take every challenge to selfdevelop and learn. Mangers particularly view them as valuable employees, and that they have a lot to offer by unlocking their hidden potentials. In this case, managers are willingly to invest 12.

(26) time, energy, and money on these employees, hoping they could make a huge difference in the company performance (McGregor, 1960). As Zhang Yong, the owner of Haidilao, described his business ethics, he does not hire workers for the use of their hands but rather he hires them for the use of their brains in any unexpected situation (黃鐵鷹，2014). According to the learning institutions established by these restaurant chains, there are two major types of training: physical (employment) and mental (management) that can be either belong to Theory X or Theory Y management. For instance, physical training such as trade and sports are designed to train employees’ culinary skills and to hone their bodies healthy, they belong to Theory X management. On the one hand, managerial training were to prepare current managers of becoming future leaders in any successful organization, belonged to Theory Y management such as Hamburger University of McDonald’s, Haidilao University of Haildilao, and managerial training programs of Wowprime. Lastly, Theory XY is a more democratic management that combines both theories that are used in a given situation where employee are authorized with empowerment, but with limitations or restrictions. The situation applied to both Haidilao, and T.G.I. Fridays whose managements limited employees from giving freebies like desserts or waiving off of cheques must indicate valid reasons for doing so. For instance, in situations that employees are giving freebies or waiving off of cheques is due to the avoidance of potential conflict with rude and unreasonable customers. Instead of bravely resolving the situation accordingly, most employees’ instinct would choose freebies or waiving off of cheques to avoid a direct confrontation with them. That is a violation of company policy for exploiting the use of empowerment. That is the reason why most restaurant organizations would not foolishly enough to give employees the key to fully access to. 13.

(27) empowerment. Since T.G.I. Fridays’ has a severe limitation of employee empowerment, therefore it is categorized in Theory X management. As for Haidilao’s employee empowerment, it is definitely more liberal than T.G.I. Fridays, hence it is categorized in Theory Y management. Another situation involves where both theories can be applicable to Theory X and Theory Y workers is bonuses, rewards, and wages but with different intentions behind the practice.. 14.

(28) Chapter Two Literature Review The second chapter is divided into four sections: the first section briefly introduces the various types of restaurant operations and their characteristics (Chain or independent, franchise, quick service, fast casual, family, casual, fine dining, steakhouses, seafood, ethnic, and chef owned restaurant). The second and third sections introduce Theory X and Theory Y management in Cross-strait and North American restaurants. The final and fourth section will conclude chapter two by describing the operation of leadership within the restaurant setting.. Section I Types of Restaurant and their Characteristics Chain or independent, franchise, quick service, fast casual, family, casual, fine dining, steakhouses, seafood, ethnic restaurants, and chef-owned restaurant. Each has its own advantages and disadvantages, and finally it is up to the owner’s decision over which is more suitable for his or her business venture. This section is divided into two parts: current restaurant industry of Cross-strait and current restaurant industry of North America. Part I introduces the current restaurant industry of Cross-strait that represents the most successful restaurant chains and franchises which already have established a cult following among frequent dining enthusiasts. Here are the current list of six prevalent brands that have truly dominated the foodservice for patrons to dine: Wowprime (王品集團), Din Tai Fung (鼎泰豐) (Thai Town Cuisine (瓦城泰統), Kanpai Group (乾杯食集團), Zensen Sushi Express (爭鮮壽司), Mitsui (三井) and Haidilao (海底撈) from China.. 15.

(29) According to Wowprime’s total revenue of 2014, the company earned 17 billion NT dollar (林潔玲，2014). Din Tai Fung did not reveal too much of its revenue of 2013, but it was reported to have earned the highest turnover rate of 48%. Now Yang, the owner of the franchise wished to lower the turn table rate by making servers to wear leather shoes instead of sneakers. Because he does not want his precious employees to overwork themselves (王一芝，2014). Thai Town Cuisine, the Thai cuisine restaurant empire has earned $19 billion NT in 2013 for its total revenue (王一芝，2013a). Finally, Kanpai Group was reported annually of earning over $7 million NT (張翔一，2013). For other two successful Japanese chain restaurants in Taiwan: Zensen and Mitsui. Both restaurant chains were reported to be quite successful in their business. Zensen was reportedly to has earned $2.5 billion NT in 2007(陳建豪，2007), and Mitsui has earned $2 billion NT in 2013 (TVBS新聞，2014). All seven restaurants have great revenue results in the past and present, which make these restaurants a great study for the dissertation.. Table 2-1 Restaurant Chains and Franchises in Cross-strait Names Wowprime (Taiwan). Wowprime logo is the trademark property of Wowprime Group. Restaurant Types Chains, steakhouses, Japanese cuisines, Hot pots (Japanese style) Teppanyaki (Japanese style), BBQ-grill, Fried pork, Vegetarian, Coffee, Italian cuisine, Fine dining, family, casual. Characteristics Currently owns 15 major brands: 王品牛排,西堤牛排, 陶板屋, 藝奇, 聚, 石二鍋,夏慕尼, LAMU 慕 Hot 7, 原燒, 品田牧場, 舒果,曼咖啡, 花隐怀石料理, ITA 義塔 It has 300 branches in Taiwan, China, and Thailand Average price: NT$600-NT$1300 (CDN$22-CDN48) Financially earned NT$15-17 billion in 2013 to 2014. Source: Wowprime (2015). Wowprime. TW: www.wowprime.com.tw. 16. (continue onto page).

(30) Table 2-1 Restaurant Chains and Franchises in Cross-strait (continued) Names Restaurant Types Characteristics Din Tai Fung (Taiwan) Currently has 98 branches across the globe Chains, Franchise, Chinese cuisine, Casual, and family. Landmark site visited by tourists and locals Michelin One star rated restaurant. Din Tai Fung logo is the trademark property of Din Tai Fung Inc.. Specializes in Xiaolongbao, and dim-sums Average price: NT$600-NT$900 ( CDN$22-CDN33) or more Annually earned NT$1.2 billion in Taiwan and NT$3 billion overseas Thai Town Cuisine (Taiwan). Currently has 30 branches in Taiwan, and 6 branches in China Chains, Thai cuisine, Casual. Specializes in hot spicy curry and other traditional Thai dishes Average prices: NT300-NT$500 (CDN$11-CDN$18) Financially earned NT1.9 billion in 2013. Thai Town Cuisine logo is the trademark property of Thai Town. Zensen Sushi Express (Taiwan). Currently has 291 branches in Taiwan, China, Hong Kong, and Singapore Chains, revolving sushi, fast casual service, and Japanese. Sushi Express logo is the trademark property of Zensen. Specializes in sushi platters on the conveyor belt (all priced at $30 NT) Average price: NT$300-NT$600 (CDN$11-CDN$22) or more Earned NT$2.5 billion in 2007 (continue onto next page). 17.

(31) Table 2-1 Restaurant Chains and Franchises in Cross-strait (continued) Names Restaurant Types Characteristics Kanpai Group (Taiwan) Currently owns 7 brands: Kanpai （乾杯）, Old Kanpai （老乾杯）, Red Wine Kanpai （紅酒乾杯）, Kanpai Bar, TAN （微風）, 黑毛屋，季月乾杯, and 八兵衛 It has 20 branches in Taiwan Chains, yakiniku BBQ (Japanese style), fast casual service. Specializes in meat and seafood assortments: beef, pork, chicken, shrimps, clams, and Korean appetizers (kimchi) Drinks: Beer and soft drinks. Kanpai logo is the trademark property of Kanpai Group. Average price: NT$800-NT$2000 (CDN$30CDN$74) (a la carte and drinks) Financially earned NT $700 million in 2013 Currently owns 7 brands: Mitsui (三井), Mitsui Cuisine (三井料理美術館), Mitsui Japanese Cuisine, Mitsui. Mitsui (Taiwan). Mitsui logo is trademark property of Mitsui. Cuisine (明水三井), Kyoku Sushi (極壽司), Mitsui Style (三井選品), and 三井 Cuisine M.. Chains, Japanese cuisine, Fine dining, chefowned. It has 10 branches in Taiwan Serve the finest and freshest ingredients around the world Source: Din Tai Fung (2015). Din Tai Fung. TW: www.dintaifung.com.tw (above) Thai Town Cuisine (2015). Thai Town Cuisine. TW: www.thaitown.com.tw (above) Zensen Sushi Express (2015). Zensen. TW: www.sushiexpress.com.tw/about.phh (above) Kanpai (2015). Kanpai TW: www.kanpai.com.tw/index.html (above) Mitsui (2015). Mitsui. TW: www.mitsuitaipei.com.tw/zhi/index.html (above). (continue onto next page). 18.

(32) Table 2-1 Restaurant Chains and Franchises in Cross-strait (continued) Names Haidilao (China). Restaurant Types. Chains, hot pot (Chinese style), Sichuan cuisine, fast casual service, and family. Characteristics Currently has 80+ branches in China, and one in the US and in Singapore. Specializes in hot spicy soup packs sold in grocery stores, and in restaurants. Impeccable services like nail polishing, shoe shining, and board games at the waiting lounge.. Haidilao logo is the trademark property of Haidilao Inc.. Average price: $88 RMB per person (NT$434) or (CDN$16) Annually earned $312.7 million RMB Source: Haidilao (2015). Haidilao. CN: www.haidilao.com/index.html. I. 王品集團 (Wowprime) was established in 1993 by Dai Shenyi; it is highly regarded as one of the most successful restaurant chains in Taiwan that created fifteen brand names within two decades, each has created its own unique service, food, mission philosophy and target market. Ranging from Japanese fusion, Japanese BBQ, French, Italian cuisine, hot pots, teppanyaki, tonkatsu, coffee shops to fruits and vegetarian cuisine. Each brand has launched its own marketing campaign, collaborating with media and credit card companies. It currently has 300 branches opened in Taiwan, China, and Thailand. The restaurants mainly specialize in the casual dining segment and only Wang Steak restaurant categorizes in the Western fine family dining segment (Chen, 2013). Profitability wise in the first quarter of 2012, consolidated as a group, Wowprime achieved 55% gross margin, 13% operating margin, and 11% after tax net margin. None of the operating activities include interest revenue, licensing revenue from Tokiya Taoban Thailand operation, and minor loss from change in fixed asset. The company does not own any land of the restaurants, and hence, depreciation is minor and only around 4.2% of total cost of goods sold 19.

(33) and selling, general and administrative expenses (Chen, 2013). In 2013, when the group is not consolidated, Wowprime achieved similar results of 53% gross margin, 11.6% operating margin, and 13% net margin (康和証劵投資顧問股公司，2013a). According to its financial statement from 2013 to 2014, Wowprime has earned $14.89 to $16.92 billion NT, and it is planning for an unit expansion up to 131 units from its existing 359 locations in 2014. In 2015, the enterprise hoped to expand another 10 units which give a total units of 500 locations (林潔玲，2014， 2015). II. 鼎泰豐(Din Tai Fung) is an award winning restaurant chain originated from Taiwan, and it is the only restaurant brand from Taiwan to receive a Michelin star restaurant rating. It is touted as the most prestigious honor to receive such an acceptance. The restaurant specializes in xiaolongbao, a pastry filling that stuffed with pork and vegetables containing soup. It is a bite size delicacy adored by many tourists who are willing to pay a pilgrimage visit to the restaurant during their stay in Taiwan. It is suffice to say that Din Tai Fung is a landmark restaurant that represents the food and beverage industry in Taiwan. The establishment was once a cooking oil retailer founded by Yang Bingyi (楊秉彝) who was born in Shanxi China but moved to Taiwan in 1948 as a result of the Chinese Civil War. Earlier in his life, he worked at Heng Tai Fung (恆泰豐油行) for 10 years but soon found himself unemployed due to the store’s closing. Thus he and his wife Lai Penmai established Din Tai Fung, a cooking oil retailer in 1958. How did the establishment convert itself into one the most recognizable chain- restaurants in the world is rather legendary. In 1980, a veteran solider who specialized in making xialongbao asked Yang Bingyi whether he can set up a food stand in front of the store to sell xialongbao. The food stand business became an overnight sensational hit and Mr. Yang immediately saw it as a business opportunity, he then decided to learn making the delicious bite size delicacy, later, Mr. Yang ended the cooking oil business, and start focusing on making and selling xialongbao as his main business, it later became a full-fledge restaurant in the 1980s. His son, Yang Jihua (楊紀華) the 20.

(34) current operator and CEO took over the business and turned the brand into a multi- billion dollar empire across the globe. Currently Din Tai Fung has 9 branches in Taiwan, 3 branches in Hong Kong, 1 in Macau, 24 branches in China, 13 branches in Japan, 6 branches in Korea, 18 branches in Singapore, 4 branches in Malaysia, 12 branches in Indonesia, 1 branch in Thailand, 5 branches in the United States, and 2 branches in Austria (Din Tai Fung.com.tw, 2015). 98 locations worldwide. Profitability wise, the restaurant founder refuses to go public with the company’s success but rather he chooses to give back everything that the company has earned to his trustworthy employees. He sees them as the most valuable asset and has a lot of potential to grow. Although no profit data available for public access but the company reported to have earned the annual revenue over NT$1.2 billion in Taiwan and over NT$3 billion worldwide for its overseas ‘franchise business (江睿智，2010). This remarkable feat has to deal with its successful managerial technique that the owner claimed to inspire from McDonald’s!. III. 瓦城泰統 (Thai Town Cuisine) was founded by Xu Chengyi (徐義) in 1990 and begins its restaurant operation in serving casual family style Thai food. In 1993, 瓦城 started standardizing its kitchen and utilizing the Point of sale system. The company placed most of its restaurants within shopping malls to ensure foot traffic that help intensifies shopping crowds. Overtime, this gradually built itself a name for serving consistent Thai cuisines. The tremendous success of the first family style Thai restaurant 瓦城, led TTC to grow confidently by striking the iron while it is hot when it decided to roll out its second more trendy and contemporary brand Very Thai (非常泰) which also served Thai food but targets at adolescents and younger adults. To expand its food and beverage empire across Taiwan, TTC then launched its Chinese Hunan food brand 1010 in 2006. TTC currently has thirty branches in Taiwan and only six brands 21.

(35) belong to the 1010 Chinese restaurant. The company offers the most authentic Thai food experience to diners and enthusiasts alike in Taiwan. TTC went public in 2011and is planning to open one hundred restaurant locations in Greater China in 2013. The first Thai Town (瓦城) restaurant is slated to open in Shanghai in 2014 (Chen, 2013). Probability wise in 2013 the full year consolidated statement, TTC achieved 54% gross margin, and 14.2% operating margin, and 26% net margin. 2014 the full year was consistent at 54% gross margin, 14% operating margin and 29% net margin (康和証劵投資顧問股公司， 2013b). Then in 2012, the company reported to have earn $2 billion NT with an annual growth of 25% (王一芝，2013a). IV. 乾杯食集團 (Kanpai Group) is a quick casual service restaurant chain founded in 1999 by a half Japanese and half Taiwanese owner named Hirade Shoji (平出莊司); the restaurant serves Japanese style BBQ called yakiniku and brings the kanpai toasting culture to Taiwan. During his college years, the founder ran his first restaurant and later target at teenagers and young adults in his current restaurants. The young and feisty founder is vivacious and fun, he even created some drinking games such as kiss for free dish of pork, bottoms up at 8pm and get a free refill, this gaming activity instantly gains popularity among young adult patrons. The small restaurants generally situated in the alleys and you can hear echo of excitement coming from it. The experience was quite memorable when going for the first time. Besides the current restaurants, Kanpai has expanded and introduced more premium brands such as Old Kanpai and Red Wine Kanpai, all of which serve Japanese yakiniku but in a much higher end dining environment and more pricy dishes. The founder decided to open another product line called Kanpai Ippudo, which offers Japanese ramen, the first location was opened in May 2012 and with the second location opened in 2013. In total locations, Kanpai currently has twenty restaurant units in Taiwan (Kanpai.com, 2015).. 22.

(36) Profitability wise, Kanpai has not yet made public, so there are no data available for public access. It was reported in 2013 that with twenty restaurants, Kanapi group earned NT$700 million (CDN$25 million) of revenue, or almost NT$30 million (CDN$1.5 million) per restaurant. Kanpai restaurants have smaller seating capacities and could not sit more than forty people each round which made the dining atmosphere cozy and fun (Chen, 2013).. V. 爭鮮壽司 (Zensen Sushi Express) is a quick causal revolving sushi restaurant chain founded in 1978 by Mr. Chin-Chiou Stanley Chen (陳津秋原本) in Taiwan. The company was originally started as a clothing export business but later divert it into a food and beverage business. In 1996, Chen set up his first sushi take out business and later that year he founded a revolving sushi restaurant. The concept was indeed a success, he quickly expanded the operation into a wholesome food business. As of 2012, it opened 200 locations in Taiwan, 70 in Mainland China, 20 in Hong Kong, 1 in Singapore. It plans to stretch its restaurant chains in the U.S sometime in 2013. The name Zensen is a play on words that sounds alike but has a dual meaning to it. The word literally means to compete with freshness but it sounds like ‘truly fresh’ in Mandarin. Besides the catchy and memorable name, the company truly aims for freshness and this reflects the persistence and dedication of providing quality food at an affordable price. The emphasis on quality is serious business at Zensen as the ingredients to prepare for each dish, are sourced from numerous places of origin, some from points around the world, and where practical, locally. The mix of food ingredients may include tuna from Norway or Canada, shrimp from Thailand, scallop from Japan, and rice from California. Such procurement scheme will provide the company with careful selection allowing the restaurant to offer quality sushi at great affordable prices (Sushi Express.com.tw, 2015).. 23.

(37) Probability wise, it is not a listed company, and so it did not disclose any financial data to the public for reference. However it is reported to have earned an annual revenue of $2.5 billion NT (陳建豪，2007).. VI. 三井(Mitsui) is a fine dining Japanese chef-owned cuisine restaurant chain originated from Taiwan and it currently has ten branches. The company was founded by a very dedicated chef named 黃奕瑞 in 1992. His insistence for freshness goes on the traditional way as Japanese sushi chef would get up early in the morning at 6am to the fish market to pick up the freshest procurements. He is a well-trained sushi chef that demands perfection at its greatest, so going to the fish market allows him to hand pick the best quality product. Mitsui takes sanitation seriously because it is something that cannot be seen which makes it valuable. Because sanitation can offer the freshest sushi, and this is what helped builds the foundation of the company. It is also setting a firm commitment to the customers that ‘you will get absolutely nothing but the best we can get for you.’ To maintain and preserve its absolute freshness of food ingredients; the founder improves their weekly turnover rate. In order to provide the freshest ingredients; he invented a ‘modifying menu’ in his business model which is unlike other conventional Japanese cuisine restaurants; it does not have a fixed menu. It solely relies on whatever ingredients available at the time being to prepare the dishes to customers. The end result will give customers huge surprises every day as they do not know what the menu will offer today or tomorrow! Mitsui imports seafood from all over the world to get the highest quality but in return selling to their beloved customers at a very reasonable price. It is like treasure hunting when eating at Mitsui, a customer would describe (張志誠，2007). The company currently owns seven brands: Mitsui (三井), Mitsui Cuisine (三井料理美術館), Mitsui Japanese Cuisine, Mitsui Cuisine (明水三井), Kyoku Sushi (極壽司), Mitsui Style (三井選品), and 三井 Cuisine M. Each brand has its own ranking. 24.

(38) quality, so customers will have several options to choose from when they consider dining at one of the Mitsui restaurants (Mitsui Taipei.com.tw, 2013). Profitability wise, it is not a listed company that goes public, so there are no financial statements made available for public to access. However, it is reported to have annually earned $2 billion NT (TVBS 新聞，2014).. VII. Haidilao (海底撈) company is one of the most successful quick service hot pot restaurant chains originated from Sichuan province, China which started out as a small shop selling "hot and spicy soup"(麻辣烫) and later it developed and expanded its menu range that gains positive reviews from customers and other restaurant counterparts. It was founded in 1994 by a businessman and CEO, Zhang Yong (張勇) who came from a small village in Sichuan. Over the past 16 years, it has owned more than 80 direct marketing stores in Beijing, Tianjin, Shanghai, Nanjing and many other major cities. The first US outlet was opened in Los Angeles on September 2013 (Haidilao.com, 2012). Service wise, Haidilao provides a very unique experience to patrons that largely contribute to its success. For instance, at the waiting lounge, customers can enjoy fruits and drinks, go online, and get their shoes shined or nails painted, all for free. They can even play poker or checkers. When customers get their table, Haidilao servers provide them with service beyond their expectations, such as using plastic bags to cover cell-phones to protect from food and grease, they even provide cleaning cloth for glasses! These are just one of the examples of thoughtfulness and considerations which makes Haidilao’s dining services superior than any other counterpart in the dining industry (Zhao, 2011). Profitability wise, Haidilao is not a listed company that offers public stock options. So there is no disclose for detailed report. However, 時代周報 (2014) revealed that the company had. 25.

(39) an impressive revenue in 2012, it annually earned $312.7 million RMB. The net profit also went up to $400 million RMB that year (時代周報，2014).. Part II introduces the current restaurant industry in North America and several of its most successful franchises except for Schwartz’s, whose restaurant remains as a single location despite of its ultra-success that generated a cult following. Three brands are originated from Canada, and four brands are originated from the U.S. The current dominating franchises in North America are Red Lobster (USA), Tim Hortons (Canada), Sushi Shop (Canada), T.G.I. Fridays (USA), Outback Steakhouse (USA), and McDonald’s (USA). The current famous landmark standalone restaurant in Montreal, Canada is Schwartz’s. These restaurant chains in North America are immensely popular, particularly Tim Hortons and McDonald’s. These two biggest franchises own over 7,000 locations combined worldwide. Tim Hortons is as big as Starbucks in the Canadian quick service restaurant segment. It holds 62% of the Canadian coffee market, and whereas Starbucks holds 7%. Although Tim Hortons is virtually unknown in Cross-strait including Taiwan and China, but it is indeed very successful in Canada. Red Lobster is another well-known franchise that has not introduce to the market in Cross-strait. It is very well-received in Japan as the number 1 seafood restaurant, it currently has 23 locations there. Both T.G.I. Fridays and Outback Steakhouse have restaurant chains in Taiwan. T.G.I. Fridays currently has 15 locations, and Outback Steakhouse has 5 locations. Although it may not be as popular as T.G.I. Fridays in Taiwan, but it is extremely popular in South Korea. It currently has 101 locations there! The main reason for its success, is the business model which will be further explained later at the Applying Theory X and Theory Y with restaurants in the U.S section. Finally, Sushi shop is the first Japanese cuisine restaurant chain that turns into a franchise from Canada, it is founded by MTY Food Groups, which is a huge food and beverage organization in Canada that owns 26 brand names. Lastly, Schwartz’s is 26.

(40) a famous landmark site from Montreal, Quebec in Canada that is not a restaurant chain but it certainly has the capital and potential to do so. It is worth CDN$10 million for that restaurant. Table 2-2 Restaurant Chains and Franchises in North America Names Red Lobster (USA). Restaurant Types. Characteristics Specializes in seafood, and steaks Currently owns 705 locations worldwide. Red Lobster logo is the trademark property of Golden Gate Capital. Chains, franchises, causal and family mix. Brand founded by Darden Restaurants sold to Golden Gate Capital for US$2.1 billion (Jul 28, 2014) Average price: US$30- US$60 (set meal) (NT$908-NT$1,817) or (CDN$32CDN$65) Annually earned US$2.62 billion worldwide Average Annual per sales: $3.7 million in 2013 Specializes in coffee, donuts, bagel, cookies, sandwiches, soups, tea and juices. Tim Hortons (Canada). Tim Hortons logo is the trademark property of Restaurant Brands International. Chains, franchises, quick service, cafe, and bakery shop. Currently owns 4,288 locations in N.A and the middle-east 3,453 restaurants in Canada, 808 in USA, and 27 in the Persian Gulf region Annually earned $3.3 billion and grew total revenue of 4.3%. Average price: CDN$5- CDN$15 or more (NT$138-NT$414) Source: Red Lobster (2015). Red Lobster. US: www.redlobster.com (continue onto next page) Tim Hortons (2015). Tim Hortons. CA: www.timhortons.com/ca. 27.

(41) Table 2-2 Restaurant Chains and Franchises in North America (continued) Names Restaurant Types Characteristics Sushi Shop (Canada) Specializes in traditional, creative, and innovative sushi (Asian and Western mix). Chains, franchises, fast casual, Japanese cuisine, sushi. Currently owns 130 locations in Canada (Quebec and Ontario province) Chains owned by MTY Food Group: has 26 brands Average price: CDN$20 to CDN$40 (NT$540-NT$1080). Sushi Shop logo is the trademark property of MTY Food Group. Annually earned CDN$101.36 million revenue in 2013 by MTY Food Groups T.G.I. Fridays (USA). Specializes in hamburgers, BBQ, and steaks Beverages: alcohol. Juice, and soft drinks Chains, franchises, casual-dining, and bar. TGI Fridays logo is the trademark property of Sentinel Capital Partners and TriArtisan Capital Partners. Currently owns 992 locations in the U.S Currently has 920+ restaurants in 61 countries: in Africa, Americas, Asia, Europe, and Oceania continents (USA not included) Average price: US$20-US$40 per person (NT$634-NT1,2688)per person Annually earned US$2.7 billion. Source: Sushi shop (2015). Sushi Shop. MTL: www.sushishop.com/en T.G.I. Fridays (2015). T.G.I. Fridays. US: www.tgifridays.com. 28. (continue onto next page).

(42) Table 2-2 Restaurant Chains and Franchises in North America (continued) Names Restaurant Types Characteristics Outback Steakhouse Specializes in steaks and seafood platters (USA) Currently owns over 1,200 locations in 23 countries: North and South America, Chains, franchises, casual Europe, Asia, and Australia dining, Australian themed steakhouse Annually earned US$2.45billion in 2013 Outback Steakhouse is the trademark property of Bloom’ Brands. Average price: US$25-US$35 per person (NT$792-NT$1,110) per person. Schwartz’s (Canada). Specializes in smoked meat sandwiches, poutine Landmark restaurant: 80 years old. Schwartz’s logo is the trademark property of Schwartz’s. Standalone, Hebrew cuisine, Delicatessen, fast Average price: CDN$12.64 -CDN$13.09 casual service, smoked (NT$341-NT$353) per person with meat combo order Purchased by several Canadian celebrities for CDN$10 million Specializes in burgers, fries, chicken and etc... McDonald’s (USA) Chains, franchises, fast food, family Quick-service, hamburgers. McDonald’s logo is the trademark property of McDonald’s Corp.. Currently owns 3,500 worldwide locations in 119 countries Average price: US$5.99 to USN$7.99 a combo (NT$190-NT$253) a combo meal (combos) burger, fries, and drink Financially earned US$28.1 billion in 2013. Source: Outback Steakhouse (2015). Outback. US: www.outback.com Schwartz’s (2015). Schwartz’s. MTL: www.schwartzsdell.com/ca/en McDonald’s (2015). McDonald’s. US: www.mcdonald’s.com. 29.